How to Be Successful With Your First Investment Property
By Rob Woods, Fix it Dads
It's thrilling to think about investing in real estate. After all, there are many benefits of doing so, including having a steady stream of passive rental income, capital appreciation, and even tax advantages on your property’s appreciation. You may have only thought about it, or you may be weeks into the process. In either case, there are a few things you can do to make sure your first investment in Calgary goes smoothly and turns a profit.
Find a Good Real Estate Agent
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A skilled real estate agent can help you find a property that will maximize your investment and return. They'll have an eye for what properties have the most significant potential, as well as how to negotiate with the seller, so you get a deal that makes you feel comfortable with your investment.
Learn About The Rental Market in Calgary
You want to know about the area before finalizing the sale. Research the location, and decide if it's a place popular for renters. Determine whether amenities are nearby that people would enjoy, such as grocery stores, schools, and parks. You'll also want to investigate property values in that area. If they have been steadily increasing or decreasing over time, it will affect your return on investment.
Should You Hire a Property Manager?
Managing a rental can take a lot of time and work. If you're not prepared to invest those hours, managing the property yourself may not be the best investment for you. To find a good property manager who will take care of tasks like tenant screening, preventative maintenance inspections, and more, ask for referrals from real estate agents. A management company can also help you find a tenant and be an on-call resource for questions and issues.
Inspect the House and Land
Get a professional inspection of the house and land before you buy it. While it's not a legal requirement in Calgary, a home inspector will tell you what needs updating or replacement or if any pressing problems need immediate attention. This helps you plan how to spend your money best. The land inspection gives you insight into flooding risk, potential oil spills, and other environmental factors that could affect your investment.
Calgary Real Estate Market Trends
There is an increased demand for single-family homes with lots of room to roam, which has led to additional costs for yard maintenance and outdoor upkeep. Understanding the Calgary real estate market can help you make profitable investments for years to come. Here are some of the most critical trends to know about.
The market in Calgary is scorching right now, with prices increasing every year. If you can take advantage of low vacancy rates, you'll have an easier time finding renters.
Consider an As-Is Property
If you're buying a new home as-is, be sure to consult with a lawyer, inspect the property, and examine land records for any red flags. Make sure you have all of your questions answered before you buy.
Some people look at older homes as potential investments because they're less expensive than new ones. Buyers with the means to invest in renovations are likely to have an advantage. Be prepared for higher maintenance, such as new roofs and plumbing.
Find Success With an Investment Property
You're ready to buy an investment property in Calgary, Canada. Armed with knowledge and research, you can find success when it's time to purchase through proper preparation.
For help in managing your investment property, contact Power Properties in Calgary.